Chapter 2

Stores Department

The stores department is one of the important departments of the company. This department handles inventory. Whenever any raw material or finished goods have to move in or out of the company it has to go through the stores department. The responsibility of the store department is to receive the goods after the order is made, to store the goods safely till they are consumed and to issue raw material to the production department according to their needs for the production and dispatch the finished goods. The stores manager is the head of this department. He looks after the entire operations of the department. Two store officers are appointed who maintain the documents of the stores. Dispatch invoicing, warehousing certification, packing and raw material etc. are looked after by the stores assistant who works under the store officer. The packing of finished goods is looked after by the stores department. Departmental hierarchy: Store Manager

Store Officer

Store Officer

Store Assistants (6)

Employees (27)

One of the main functions of the stores is to maintain raw material and packing material for the company. First when raw material or packing material enters the company it is checked by the stores for any defects in the containers and to see that the material sent by the supplier is the same as specified by the production department.

After verifying the delivery challan and other required documentation the material is unloaded, then the Quality Assurance department is informed for further material checking, after getting approved from Quality Assurance department, the material has to be accordingly arranged on the basis of its grades, type and expiry date. Thereafter a detail report is prepared. They check if suppliers Certificate of Analysis is attached. One copy of delivery is signed and given to the supplier and the other copy is maintained by the department. Then a goods receipt note (G.R.N) is prepared which has all the information like name of the raw material and packing material, purchase order number, date of receipt, suppliers name, quality received accepted and rejected; than the material is stored on pallets and kept on racks. The department stores raw material and packing material. The raw material is given to the production department according to the requisition given by the production department. A copy of requisition is maintained by the department. The issued quality and the G.R.N number are entered in the requisition note. Excess of material can be given only after requisition. The store department is also responsible for final packing of the finished goods. Before the consignment is shipped the finished product must be properly shrink wrapped and strapped to prevent any further damages during the transport, also stores department seals the boxes which could be only removed by the concern customer. Stores department also makes a sample seal envelop in which the product i.e. the toothbrush is placed, which is checked by customs inspector for security purpose about the consignment which is shipped by the company. Handling and disposing the waste material generated at the site is also one of the duties of the stores department. This includes defected brushes and other material countered at production department. The next function of this department is dispatching the finished goods after receiving the order from the production department. While dispatching the finished product, stores have to undergo many documentation procedures to satisfy the statutory requirements. As Schiffer and Menezes is an E.O.U (Export Oriented Unit) based company there are many other documents which it has to maintain to satisfy the statutory needs. These documents are required by different people and organizations for example importer, Licensing Authority, customs, Export Promotion Council, Port Authority, Shipping company etc. and the stores department takes care of all thus work.

Different types of documents handles by the stores department are as follows: Invoice: Invoice is the export is the exports bill for sale of goods. It contains name of exporter, importer, consignee, description of goods, number and kind of packages, shipping mark, port of loading, port of discharge and many other details of the transaction. It is required to be signed by an exporter or his agent. This invoice will have 10-15 copies as per requirements. This invoice is normally prepared first and several other documents are prepared by deriving information from this invoice. Many countries require the invoice therefore it is to be certified by consulate of importing country. This is also known as legislation of documents. The Government has introduced many schemes to encourage export, being 100% EOU Schiffer and Menezes Company does not pay any duties for the export of the goods. Duties are paid when goods are sold in local market i.e. DTA (Domestic Tariff Ares) sale. Certificate of Origin: Certificate of Origin is one useful document in import export trade. This certificate indicates that the goods which are being exported are actually manufactured in a specific country mentioned therein. This certificate is sent by the exporter to the importer and is useful for clearance of the goods from the customs authority of the importing country. This document is required by the importer for import clearance. A.R.E form: This document includes all the specification of the consignment, which is required by the custom department for the clearance of the material from the port. Packing List: Packing list is a consolidated statement in a prescribed format detailing how goods are packed. It is very useful document for customs at the time of examination and warehouse keeper of buyer to maintain record of inventory and to affect delivery. Packing list describes cartons/ package wise detail of goods, quantity, net weight, gross weight and dimensions. Shipping bill- Shipping bill is a document required to seek permission of customs to export goods by sea/ air. It contains description of export goods, number and kind of packaging, shipping marks and numbers, value of goods, name of the vessel, destination country etc. It is only after the shipping bill is stamped and passed by the customs, the cargo will be allowed to enter into Docks/ Ports sheds. A bill of Export is used for export by land.

Requisition slip: The production department has to present requisition slip to the stores whenever it needs raw material or packing material. This document must be properly preserved by the stores and should be in position to present the same whenever necessary.

Procurement certificate: This document includes the item description, the value of consignment which is being shipped. The above said certificate has to be presented to the custom.

GR form and SFD: Since export directly relates to countrys Foreign Exchange earning it becomes essential for Reserve Bank of India to regulate an export transaction. Reserve Bank of India prescribes GR forms and SFD forms to regulate the export transactions.

Bills Of Exchange: A Bill of Exchange or draft as it is commonly known is an instrument in written containing an order, signed by the maker, directing a certain person to pay a certain sum of money only to the order of a person to the bearer of the instrument. It is in the form of a demand.

Bills of Lading- The Bills of Lading is a document issued by the shipping company or its agent acknowledging the receipt goods, mentioned in the bill for shipment on board of the vessel and undertaking to deliver the goods in the order and condition as received to the consignee or his order provided the freight and other charges specified in the bill of lading have been duly paid.

List of documents to be submitted to the customs

Shipping Bill Invoice GR and SDF form Shippers Declaration form Inspection Certificate Export License Copy of export contract/ Export order Packing List

Purchase Department

The purchase department is responsible for the purchase of raw material and packing material like Polypropylene, master batches, shippers, dispensers etc. This department procures the overall plant requirements of spares, raw material, production material, capital goods etc. Purchase Manager is the head of the department. He takes all the major decisions needed for this department. Below him are the two Purchase Executives they look after the functioning of the entire department and below him are two Purchase Officers. The purchase department conducts planning on monthly basis for four months. Cash payment is done only after the goods are checked. Departmental hierarchy: Purchase Manager

Purchase Executive (2)

Purchase Officer (2)

This department procures overall packing needs, spare and raw material for the company. The production department gives the purchase department a plan about the material they will be using in the particular period of time that is four months to manufacture the product.

Example of a production plan Table No. 2.1 PRODUCTION PLAN OF THE YEAR 01.01.2011 RAW MATERIAL REQUIR ED Active Perlodent Medium Active Perlodent Hard Active PerlodentUltrasoft Perlodent Dragon soft 214 95 63 45 213.75 95 62.75 45 67 118.75 602.25 25 35 60 25 35 60 50 105 1555 214 95 63 145 242 119 878 JAN FEB MARCH APR+MAY TOTAL

Perlodent Dragon Medium 67 Active Junior TOTAL 118.75 602.75

Purchase Order Processing The purchase department, after getting necessary approval from management and its customers, does purchase order processing. For procurement of all materials, specifications are handed over to the new vendor. The vendors suitability of supplying the material is considered. Information from the vendors is obtained by purchase using Vendor Information Form. Every purchase order has a specific date and number of the purchase order form. It includes the vendors name and vendors specification. Detail of the material are given by the item name, code , specification, quantity required, unit of measurement, rate and reference to the quotation received. Discounts, duties, taxes and packing and forwarding details are also listed in the purchase order. Payments terms, delivery date, carrier name, transports recommendation and specific route if required are specified in the order. Detail of the material ordered that are required from the suppliers are requested for example lot number, manufacturing date, expiry date if any. The signed acknowledgement of the vendor on the duplicate copy of the purchase order is sought confirming the vendors acceptance of the order from purchase. The purchase order mentions the name and address of the bank only if the payment is done through bank.

Information flow pertaining to purchase The purchase department after receiving the production plan from the customers, orders material for manufacturing taking into account lead time for shipment or transport required by vendors. When the order material arrivers the same is checked against the delivery challan for the quality and ordered quantity. The stores check if there is any damage to the material and containers and vendors test certificate. Stores inform Quality assurance department by raising the GRN (Goods Receipt Number) assigning material a unique GRN number and adding material in the ERP (Enterprise Resource Planning) system. Quality assurance checks and approves the material informing stores by approving the GRN and also in the computer ERP system. Purchase mentions in the product order the rates, discounts, taxes, transportation charges if any duties have to be paid, credit period and commercial terms.

Some of the functions of the purchase department are: After receiving the requisition from the production department, the purchase department starts the planning for their requirements. The purchase officer does the purchase of material based on the quantity of stock for four months. He then issues the purchase order. After releasing the purchase order he follows up for timely receipt of material for production. Sourcing the vendors for different materials for manufacturing is done through internet, vendor directory, yellow pages etc. The most suitable vendor is selected based upon the best quality provided, the price (quotations) and the time frame (lead time) transportation etc. within which the supplier can deliver the material is taken into consideration. Samples are taken from the vendor along with vendor information form. The samples are than sent to the quality assurance department and if the samples are approved then the lot is ordered and the vendor is included in the approved list. The quotations are taken of different suppliers and a comparative price statement is prepared. A suitable vendor is then selected. In case of some raw materials no negotiation is done because the supplier has a monopoly market.

Before the material arrives, the purchase department informs the store about the arrival of the material and the ordered quantity etc. If the purchased material does meet the standards and quality the goods are returned.

Process of handling feedbacks to vendors Any suggestions complaints regarding quality of material is routed through the purchase department by a Corrective Action Request form. Each CAR is having a reference number. CAR mentions the defects observed in the consignment. The CAR is sent to the vendor by the purchaser for information. CAR records the corrective action to deal with that complaint and preventive actions to avoid such complaints in future. Any reply if any received for the vendor, with action taken is forwarded to the Quality Assurance.

Quality Assurance Department

The company believes that the quality of their product cannot be compromised so they combine the best practices from organization to create an innovative and proactive tool for quality management. Its main aim is to have a continual improvement of their products and services to satisfy customer needs worldwide. Also responsibility of quality improvement rests with the each and every one, which is achieved in an environment which provides job satisfaction for everyone. Departmental hierarchy: Quality Assurance Manager

QA Assistant Manager

1st Shift Leader

2nd Shift Leader

3rdShift Leader

Incoming Inspection

Lot Inspection

QA Analyst (3)

QA Analyst (3)

QA Analyst (3)

QA Analyst (3)

QA Analyst (3)

Quality Assurance Manager is the head of the department. He looks after the documentations and process of the QA department. Under him there is the QA Assistant Manager. He assists the Manager and handles the process of the production. Then is the QA shift leader these leaders are appointed on specific shifts. There are three leaders at three different shifts. They see if there is any problem in the process and takes over the Lot Inspection as the Lot Inspection Analyst dont come in the evening, night and on Sundays. Incoming Inspection Analyst checks the incoming material. Lot Inspection check the final packed goods, so if there is any defect in the packed brush it can be corrected before going to the customers and stick a green accepted sticker on each pallet. There are 3 QA analysts under every shift who conduct quality tests.

The QA department conducts tests as soon as the raw material is received in stores. The quantity is entered in the GRN (Goods Received Note) which contains the invoice number, quantity, and damage if there and sent to the accounts department and is also entered in the ERP (Essential Resource Planning) system. Q.A analyst checks the quality of the material as per the quality norms. If it does not satisfy the norms then a rejected sticker is pasted and shifted to rejected area. The supplier & the purchase department are then informed about it. If the raw material satisfies the norms then it is shifted to the accepted area. All information is entered in ERP whether rejected or it is accepted in the Analytical Report (A.R). When the raw material enters the company, the QA department checks for the grade, name of the particular raw material as the raw material have different grade names depending upon the specification. Quality is checked if it is as per the specification and order is placed. The QA department also checks if there is any mixing of contamination or other raw material and if any damage is occurred, while transporting the raw material. The raw material is rejected if it does not match the requirements or are not as per the specification. If it matches specification then it is accepted. Then the raw material is sent for production on requisition. The GRN (Goods Received Note) which contains the invoice number, damages if there, quantity etc. is also maintained and a copy is sent to the accounts department to pay for the raw material. The QA department also prepares the Analytical Report if this report is prepared it means that the raw material is tested. MRN (Material Return Note) i.e. if any raw material is left after the production a return note of that is made. The store department whenever the same raw is required it gives first the returned material and the new batch of raw material later. The QA department also maintains a record of the data sheet. The data sheet contains the data about the raw material the different grade names, the product description, its typical properties etc. so whenever the raw material enters the company they can check through the data sheet if the raw material is the same as ordered. The Certificate of Analysis is also retained by the QA department. It is a certificate from the suppliers of material stating that the quality of the goods is of good quality.

Test of the tooth brushes Testing is done on every stage of the product. The QA analyst every 1 or 2 hours goes to collect the samples for the test.

In molding First the 1st component of the handle is visually checked, the colour and the weight of the handle is measured as the weight has to be in a specified range. If the weight of the handle is less, in the 2nd component there will be empty space and if the weight is more than the 2nd component will get merged with the 1st component and it will result in a defective good. So it is very necessary to check the weight of the handle. The detail about it is written on the Quality Check book.

Flexibility Test After molding a small amount of samples of the handles are put on compressed tester machine. Here the required force is exerted which is measured and the handles are bent to a certain angle. If the handle is as per standards then it passes the test. Crash Test The handles are fitted on the crash tester and then it is hit with a metal bolt at certain angle and speed. If it is within the specification then it passes the test. This test is used to check the flexibility of the flexible brush only.

In tufting Next is the end rounding test. Here the bristles are checked; the height, diameter of the bristles and if the bristles are curved at the tip or end. Samples of the tufted brushes are taken and an electronic device is used to check sample bristle of the brush. The tip of the bristle should be round to meet these standards. If the bristles are not rounded at the end of the brush there can be a problem for the gums of the consumers. Then for the next test the tuft is pulled out with the machine as per the given standards, if it is within the standard then it passes the test. If the bristles are not fixed properly there is a possibility of the bristles to come out. The detail about it is written on the Quality Check book.

Rotation Test This test is for brushes which have a ball in them after the bristles. The brushes are set in the rotation test machine and are kept for rotation for 3 hours. If it is as per the standard it passes the test. To check the quality of the baker card a micrometer is used. A square of 10cm is cut of the backer card and is measured. The weight is measured as GSM (Grams per Square Meter) and the length and width is measured with the scale.

Printing Tape test is done on the handles of the brushes. A cello tape is put on the printed brand name and is removed so the print does not go off.

After the checking a note is prepared. The following is a note of quality check after molding i.e. injection molding. The details about handle are noted down like the number of holes/handles, hole diameter in mm, weight of handle, colour design, spray point, ejection marking, flow orientation on surface, colour smearing, shrinkage/ cavity, cracks in brush body, parting lines and writing. The following is a note of quality check after tufting. The detail about the handle are noted down like handle colour, bristle colour, bristle diameter, trim height, bristle tuft, anchor wire, anchor diameter, anchor depth, anchor centering, end rounding, bristle flow, pull strength, coding and printing. The following is a note of quality check after packing. The detail about the handle are noted down like code of brush, free from contamination, correct backer card, colour combination of brushes and texture display.

Production Department

Production department is the main department where the system of the company is based. Production in Schiffer and Menezes takes place for 24hours which is divided in three shifts of eight hours each. The company manufactures dental care products and hence cleanliness is given very high importance during the production. The employees wear the assigned uniforms, caps to prevent hair falling and rubber slippers, employees wash hands with disinfectant to kill bacteria while working in the production area. They have to disinfect their hands every two hours. Schiffer and Menezes produces brushes for Glaxo Smith Kline, Hindustan Uniliver, private customer of Germany and three local parties like Jordan, ICPA and Indigo. There are two types of production that takes place in the company i.e. dental care products and in the other building the company manufactures toys like spinner, finger hockey etc. which are exported to other places and there they are assembled as a final product.

Departmental hierarchy: Deputy General Manager Plant Operation

Head of Department (3)

Planning Executive

Moulding Supervisor (3)

Tufting Supervisor (3)

Packing Supervisor (3)

Planning Officer

Shift Engineer (3)

Shift Engineer (3)

Shift Engineer (3)

Planning Assistance

The head of the department is the Director Plant Operation of the company, but the actual process is managed by the Deputy General Plant Operation Manger. The Head of the Department takes care of the documents and the process of production. The supervisors check if the production is done up to the specification. He is responsible for production and rejection of the products. The supervisor is responsible for production check related to quality aspect. The supervisor takes requisitions for production batches. End rounding test ion the tufting department and visual check in the moulding department is done by the production department.The shift

engineers look after the production during each shift. The shift engineers work in shifts and look after the total production, machinery, keep records on total production per shift and keep checks on labour performance. The shift engineer generates a set of moulding batch cards and places it on the machine that is going to mould the plant batch. The Planning Executive takes care of the planning of the raw material required before the production. It also plans the production plan for moulding, tufting and packing differently. The planning of the production is done taking into consideration 3% rejection in moulding, 2% rejection in tufting and 1% rejection in packing. The planning is done on 5 months basis due to lead time.Planning executive also takes care of man power planning. The stock output and dispatch delays are also maintained by him. The Planning Officer is responsible for planning of the daily product produced; he also takes care of the production process. He is responsible for manpower planning machine wise. Planning Assistants feed data in the system about the production and prepares the daily production report. They maintain the batch documents, figuresand cross check production logs. The batch numbers of different products are given by the production department. The weekly plans of the production are done by them; they also focus the volume of orders of all the customers. Planning and production is done on the basis of four months after the order has been confirmed by the customer. After receiving a confirmed order production material procurement plan is given to the purchased department, after which the executive plans for the production process. During this time the maintenance department checks if all machinery is functioning properly and then the production starts. There are 3 steps involved in the production of the tooth brush i.e. moulding, tufting and packing. During production the brushes are taken to various quality checks. After passing they are packed in display cartoons, put in to shippers and then exported. All records are maintained in the electronic processing unit i.e. Entrepreneur Resource Planning

(ERP). Here the total production, transactions, target amount are maintained. This is done to avoid confusion.

The working of the Production Department

ORDER S

COLLABORATE

SPREADSHEET

PLANNING

PURCHASE DEPARTMENT

MOULDING, TUFTING, PACKING (MATERIAL REQUISITION)

STORES DEPARTMENT (MATERIAL ISSUE) MOULDING DEPARTMENT MOULDED HANDLES

TUFTING DEPARTMENT TUFTED BRUSHES

PACKING DEPARTMENT FINISHED GOODS FINISHED GOODS STORES FOR DISPATCH

Firstly orders are raised in the system by collaborate, emails and spreadsheet on daily basis. When the orders are confirmed in the system that is the collaborate, the Planning Executive makes the entry in the system GSK (Glaxo Smith Kline) system or the Prism system about the quantity required, date of the beginning of the production, date of dispatch and confirmation of the order. The Planning Executives plans the whole process of production in advance in order to inform the customers on the shipping date. Local customers place their orders thru emails after which all information is inputted in preformatted excel sheets. The company sends the order status to the customers as per the final planning for production. Planning is done of manpower requirement, raw material and machinery. Raw material for moulding, tufting and packaging is issued by the store department. Beginning of the month four month advance planning is provided to the purchase department for raw material and packing material procurement, based on firm and focused order. Based on the order schedule, machine wise planning is provided to the respected department of moulding, tufting and packing. Batch size generated as per the order schedule with batch number which is followedrespectively in all three departments.After the material is issued the moulding of the handles start, after which is goes to the tufting department for the tufting of the bristles and then packing after which the finished good is ready. After completing the order, finished goods transfer note is produced to the store department. The QA checks are done after every stage of production.

Production Process There are 3 steps involved in production of the tooth brush that is mouldinh, tufting and packing.

Moulding Here the handles of the brush are manufactured. First the raw material i.e. polymers, rubber and color are manually fed in the bins. It is sucked through a pipe in to the machine where it melts due to the heaters. The mixture is passed in the mould. In the mould it is compressed under high pressure to form the mould to form the handle. It is then cooled and then ejected from the mould. The handle is made of different components so when a new component is added it has to go through the same process as it is done for the first component. For example a handle is made of 3 components. The first component is white in colour, the second is in pink and the third is blue. So firstly moulding is done for the white component, cooled and then it is checked. It then goes

for moulding of the pink component and in the same way for the third component in the same process on different machines. When the handles are manufactured they are stored in blue plastic crates on a pallet. Each crate is filled up and a check slip is inserted by the moulding supervisor after all the handles are manufactured. The rejected handles are put in the yellow plastic crates. The yellow crates show that the handles are rejected. Batch card is filled on completion of the batch and filed in its respective file by the supervisor. The pallet card which contains the name and colour of the product and if it is a handle, brush or a packed brush, remains along with the pallet till it is completely consumed. Handles are issued to tufting by the supervisors. The responsibility of maintaining the batch card lies with the shift engineer. After completing the batch, line clearance is done by the workers and checked by the shift engineer for the batch before starting the new product.

Tufting The plan for tufting is given by the planning department based on the plan he receives from the customers. The shift engineer under the guidance of the planning department defines a tufting batch and orders the required material from the stores through the ERP system in the computers. After moulding, the handles are brought to the tufting department. Here the handles are fed in a machine. The filament i.e. the bristles are fed into the machine from where the bristles are being tufted. An anchor wire is fitted along with the bristles to fix them. Then the brushes go through the cutter for profiling the bristles. It is further pushed over the grinder for rounding the bristles. It is then pushed for coding. While tufting sometimes on some handles, stamping of the brand name is directly stamped on the brush in the same tufting machine. The brushes are checked periodically by the QA and the supervisors. The brushes are then stored in plastic crates on the pallet. Batch card is filled on completion of the batch and filed in its respective file by the supervisors. The pallet card remains along with the pallet till it is taken for packing. Finally the tufted brushes are put in the crates and sent for packing.

Printing The printing of the brand name on the brushes are done in the printing department. Foe some handles the stamping is done in the same tufting machine after the bristles are fit. For other handles printing is carried out by the printing department. The printing is done on the machines, it has multiple rubber stamps which are stamped on the handles and the brand name is printed. It also prints the cartoon characters which are used in the kids brush. For some brushes primer is applied for 1minute and then it is placed under the rubber stamp for the print.